The Fed Is Heading Back To Zero

The Fed Is Heading Back To Zero

As yields flash recession warnings, global economic slowdowns Deepen, equity markets are on the verge of historic corrections and it seems the Fed is headed back to 0% where do you park your assets to shelter the storm?

  • Ex-Fed boss Greenspan says ‘there is no barrier’ to Treasury yields falling below zero
  • Fed interest rate forecast: Wall Street sees return to near zero

Apparently for the foreseeable future there is no money in money. Is it time again for Tangible Assets?

What are Tangible Assets?

Tangible assets can typically always be transacted for some monetary value though the liquidity of different markets will vary. Tangible assets are the opposite of intangible assets which have a theorized value rather than a transactional exchange value.

Included in the list of Tangible Assets:

Rare Coins:

  • Stability – Unlike stocks and other paper investments, rare coins will never be worthless. A rare coin’s value is not correlated with precious metals prices, offering diversity not tied to your precious metals or equities portfolio.
  • Privacy — We are not required to report your rare coin purchases or sales to the IRS or any government agency. This allows you to take your rare coin investments “off the grid”. Rare coins are a fantastic means of passing on wealth to loved ones as legacy wealth.
  • Portability — Rare coins represent a large amount of value in a small space and can potentially hold several hundred thousand if not millions of dollars’ worth of rare coins.
  • Profit — It is well known that a carefully chosen selection of rare coins based on rarity and population can show substantial appreciation over time. The supply and demand fundamentals are extraordinary.
  • Affordability — Rare coins can be acquired for all budgets.

Gold:

Gold as insurance is real money while dollars are paper backed by escalating debt. If all the warning signs above are happening, and they are, it is a safe bet you should have gold in your portfolio. In addition to rare coins we always recommend physical gold and we always recommend Gold Eagles produced by the United States Mint. There is no shortage of different bars and coins produced by private and sovereign mints but here we stick to the basics.

Silver:

Many in the know with silver are aware of the enacted historical ratio between gold and silver.

Coinage Act of April 2, 1792 SEC. 11. “And be it further enacted, That the proportional value of gold to silver in all coins which shall by law be current as money within the United States, shall be as fifteen to one”

If this ratio was to align again with gold at or above $1500 silver would be $100. A huge profit potential if this were to occur. In addition, silver is or could become the everyday currency in a post dollar environment.

Just like gold, we always recommend physical silver and we always recommend Silver Eagles produced by the United States Mint. There is no shortage of different bars and coins produced by private and sovereign mints but here, like gold, we stick to the basics.

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